When you think about real estate and investing in it, you probably think that means money that you will be out of for a long, long time. This only makes sense. Most people think of real estate investing as purchasing a home or pieces of land. The loans for these purchases often last quite some time.
But this does not have to be the case. If you know what you are doing and are doing real estate investing instead of real estate purchasing, you can have full liquidity of your money, just in case you need it.
Here's a look at the difference. In real estate purchasing, you are buying properties and then responsible for them. If they are homes or businesses, you have to maintain them and keep them in good working order.
On the other hand REITs are investments. They are purchased in shares, just like you would with the stock market. If you need some liquid cash or just no longer want to be a part of a REIT, you just sell your shares as you would with any other stock or mutual fund investment.
In many respects, REITs offer the same flexibility as any of the other markets, while at the same time offering you the chance for a longer-term secured investment.
What I mean by secured investment is that for the most part real estate always has some value. While the value may fluctuate, it is a physical asset that will retain some value over the long term. In other stocks and mutual funds, if the company that you are purchasing shares in goes out of business, you can lose everything. In the case of real estate investing, there is always an asset with worth involved.
Many people steer away from REITs because they are not a 'make money fast' source of investment income. In most cases, that is true. Most REITs will see pretty constant regular returns in dividends, but not necessarily big spikes where you can grab a big profit. With that said, think about what else is in your portfolio. If you have other stocks and mutual funds in your portfolio adding real estate investments will give you a more stable backbone to base your investment profile off of.
There is also another way to add diversity to our real estate investment trusts. Why not diversify the trusts you own. Instead of just owning commercial, residential or US based ones, you can purchase shares in a number of different investment trusts across the world and across all markets.
When you're ready to jump onboard and diversify your portfolio with the addition of a few REITs, it's time to do a little research and understand what you want and how to get it. Instead of trying to sort all of this out from a number of different sources, why not do it the easy way and get everything you need in one place. REITBuyer.com has all the aspects you need to get going with REITs. From research and analysis of the REITs out there to the tools to follow them and even make a purchase, as they are a complete investment real estate broker site.